Carey Olsen‘s Cayman Islands team has advised digital asset trading platform Kraken on the Cayman aspects of an on-chain financing deal with Maple Finance.
The transaction centres on an on-chain warehouse facility for digital asset-backed loans, bringing together one of the world’s largest digital asset platforms and an on-chain asset manager.
According to Carey Olsen in a press release on 20 July, the deal reflects the continued use of traditional finance structures in blockchain-based lending transactions.
The firm advised on all Cayman and British Virgin Islands aspects of the transaction.
The legal team was led by partners Richard Munden and Chris Duncan, with support from counsel Katrina Lindsay and associates Catriona Severns, Ella Crowley-Burrows and Simon Galante.
Munden, a finance and digital assets partner in the Cayman Islands, said: “This transaction adopts features from traditional finance structures for a transaction in the on-chain lending space to enhance liquidity and provide structural protections for investors.
“It is a great example of the innovative transactions our Cayman and BVI finance and digital assets teams work on for our digital assets clients.”
Duncan, head of digital assets and fintech across the Cayman Islands and the British Virgin Islands, said the transaction highlights the firm’s continued work on digital asset matters.
“The Kraken-Maple deal is yet another example of the cutting-edge digital assets work the Carey Olsen team is involved in and highlights our expertise in advising on the most complex of matters.
“It has been a real pleasure to work on another groundbreaking matter with the Kraken team.”
An on-chain warehouse facility is a financing structure that allows digital asset-backed loans to be originated and managed using blockchain technology while incorporating safeguards more commonly associated with traditional financial markets.
